Following the recent new orders of aircrafts by Malaysian Airlines and AirAsia, it seems that Singapore Airlines too have followed suit. This would surly invoke more competition and affect the players in the aviation industry, most notably AirAsia and Malaysia Airlines who recently announced a deal that saw shares being swapped between the 2 Malaysian carriers.
Singapore Airlines Ltd announced that they have lock in order involving 8 Boeing jets which is part of their expansion plans. The deal is said to cost some $2.3 billion. The 777-300ERs are scheduled to be delivered in 2013-2014 and will be used mostly for its medium and long haul routes. At the moment, they are operating 19 Boeing 777-300ERs which are powered up by General Electric Co.’s (GE) GE90 engines.
According to a spokeswoman of Singapore Airlines, on top of helping the company grow and expand, it is also part of their policy of operating a young fleet which averages between 6 years and 4 months. To date, they have another 106 aircrafts under their operations that include Boeings and Airbuses. The company recently posted an 82% decline in their first quarter net profit due to the rising crude oil prices and is wary of the challenges in the industry.